Competitive Strategy of Manufacturers

Question: Discuss about the Competitive Strategy of Manufacturers. Answer: Introduction: Reports say that General Motor Cos Holden Unit, which the Australias largest carmaker has said that it would shutter the production lines in the year 2017 after 69 long years. Due to this reason, about 2900 employees would lose their jobs at the automakers plants in South Australia and Victoria. For this reason, 45000 employees would be in immense danger. The chairman of this corporation has stated that the decision to end manufacturing in Australia reflects the perfects storm of several influences the automotive industry faces in this country (Santos-Vijande et al., 2012). Sustained strength of the Australian dollar, high cost of production and small size of the domestic market are some of the major components that has ignited this situation. Therefore, it is easily understood that the decision of shutting down the car manufacturing corporation has put a question on the overall manufacturing industry in Australia. However, from the companys perspectives, it has been seen that Holden car Manufacturing Company is dedicated to work in teams along with the unions and the local communities, federal and the state governments for supporting the people (Baines et al. 2012). In this part, it is necessary to shed light on AAA framework, i.e. adaptation, aggregation and arbitrage strategies. The company at this time is required to adapt this strategy, as these policies augment market share as well as profits by acclimatizing some indispensable components in a trade model of a business such that it is exercised policy in the middle of the three. Especially, in order to penetrate into the new customer base in a new market, the organization tends to adapt the measures and practices that are favored locally. Apart from that, aggregation strategies tend to accomplish financial systems of the level by generally creating global efficiencies (Russo and Minto 2012). This part generally takes into account standardization of the part of the value proposition that could further lead to the assemblage of production as well as the development procedure. On the other hand, if focus is shed on arbitrage strategies, then it can be seen this strategy neither takes into account associating the different marketplaces not assuming the local demands. Rather this approach inculcates the strategy of formation of international worth by utilizing the dissimilarities between divisions of the supply chain in different divisions. In order to stay competitive in the market, Holden car manufacturing company is advised to focus on global expansion and for that particular purpose, they are advised to rely on this AAA Framework (news.com.au 2016). Reports say that from one of just 13 countries in the world competent of structuring a car from the ground up, Australias 90 years history of accumulating as well as structuring vehicle is coming to a conclusion. Therefore, it can be stated that Holden Company is advised to adopt Ghemawats AAA framework, as this offers three generic approaches to the global value creation (Taylor 2013). Many market researchers have stated that there is no doubt that shutting down of this company has affected the car market of Australia and thus on an urgent basis, they are advised to rely on this model to win over the situation. References Baines, T., Brown, S., Benedettini, O. and Ball, P., 2012. Examining green production and its role within the competitive strategy of manufacturers.Journal of Industrial Engineering and Management,5(1), p.53. Hawthorne, J. 2015.Australia's car industry one year from closing its doors. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/australias-car-industry-one-year-from-closing-its-doors-20151012-gk7ip0.html [Accessed 22 Sep. 2016]. news.com.au, 2016.Holden to end car manufacturing in Australia and import cars. [online] NewsComAu. Available at: https://www.news.com.au/finance/business/holden-to-end-car-manufacturing-in-australia-and-import-cars/story-fnda1bsz-1226781056615 [Accessed 22 Sep. 2016]. Russo, M.V. and Minto, A., 2012. Competitive strategy and the environment: A field of inquiry emerges. Santos-Vijande, M.L., Lpez-Snchez, J.. and Trespalacios, J.A., 2012. How organizational learning affects a firm's flexibility, competitive strategy, and performance.Journal of Business Research,65(8), pp.1079-1089. Taylor, L. 2013.Holden confirms it will leave Australia in 2017. [online] the Guardian. Available at: https://www.theguardian.com/business/2013/dec/11/holden-confirms-leaving-australia-cars [Accessed 22 Sep. 2016].